The crypto market could face turbulence this summer if lawmakers in Washington fail to advance regulatory measures currently under review.
Bitwise Chief Investment Officer Matt Hougan expressed concern in a recent blog post that US Congress may squander an opportunity to enshrine key gains in crypto regulation, despite favorable developments led by the current administration.
Regulatory Advances Led by the White House
While Hougan remains confident in the long-term outlook for digital assets, projecting new all-time highs for several tokens including Bitcoin, he emphasized that political gridlock could pose a short-term risk.
“People often ask me what could derail crypto. My answer is simple: people. More specifically, politicians,” Hougan wrote. According to him, legislative inaction could reverse recent positive momentum built through executive orders, regulatory rollbacks, and pro-crypto appointments.
The Bitwise executive noted that the Trump administration has been proactive in supporting digital asset development. Examples include the creation of a strategic Bitcoin reserve, classifying digital assets as a national priority, and reversing controversial regulatory guidelines such as SAB 121.
Moreover, the appointment of crypto-aligned figures like Paul Atkins as SEC Chair and David Sacks as the White House’s “crypto and A.I. czar” has further boosted industry confidence.
However, Hougan warned that these executive measures are vulnerable to policy reversals under future administrations unless codified into law. He argued that bipartisan support in Congress is needed to solidify these gains and provide long-term certainty to institutional investors.
“We need Congress to pass legislation enshrining crypto’s progress in law,” he wrote, adding that even a single piece of enacted legislation—such as a stablecoin framework—would serve as a signal of political alignment on digital assets.
Stalled Stablecoin Bill Sparks Political Uncertainty
One focal point of current debate is the GENIUS Act, a stablecoin bill that had appeared to gain traction earlier this year. In March, the Senate Banking Committee voted 18–6 to move the bill forward, with cross-party support from several Democrats.
However, that momentum stalled in early May when nine Democratic senators, including some who had supported the bill, withdrew their backing over concerns tied to anti-money laundering (AML) and know-your-customer (KYC) provisions.
Hougan suggested the reversal may reflect shifting political calculations rather than substantive policy disagreements. He also criticized efforts within the crypto industry to merge stablecoin legislation with broader market structure reforms, warning that the strategy risks overcomplicating the process and jeopardizing near-term progress. “This is the perfect becoming the enemy of the good,” Hougan said.
Despite the setback, Hougan remains cautiously optimistic that legislation will pass, citing the economic and geopolitical benefits of dollar-denominated stablecoins. “If Washington can get its act together,” he concluded, “I think the bull market will be unstoppable.”
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